The Consumers' Waterheater Income Fund
TSX : CWI.UN

The Consumers' Waterheater Income Fund

January 28, 2008 10:03 ET

The Consumers' Waterheater Income Fund Draws on $310 Million Bridge Loan Facility

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2008) -

NOT FOR RELEASE IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

The Consumers' Waterheater Income Fund ("Fund") (TSX: CWI.UN) and its wholly-owned trust, The Consumers' Waterheater Operating Trust ("Trust"), today announced that the Trust has drawn $310 million on a previously announced senior secured bridge loan facility with The Toronto-Dominion Bank ("TD Bank").

"This strong support from the TD Bank provides us an effective bridge to long-term financing," said Steve Bower, CFO of the Trust. "We will take advantage of the additional flexibility this provides in our financing activities."

The Trust used the proceeds to refinance its $275 million outstanding 4.7% Series 2003-1 A-1 Secured Notes which were due to be repaid on January 28, 2008 and to repay the drawings under the Trust's $35 million revolving credit facility (the "Revolving Credit Facility"). The Bridge maturity date is 364 days after the closing. Voluntary prepayments are permitted at any time without premium or penalty, subject to any breakage costs. The Bridge is secured equally and rateably with the Trust's outstanding senior secured notes. The Trust's representations, warranties and covenants are consistent with the Revolving Credit Facility and the Trust's existing master trust indenture.

The Bridge bears interest at a rate of 30 basis points above the banker's acceptance rate, and is subject to an increase of 12.5 basis points if funds drawn under the Bridge are still outstanding 120 days after the closing.

Subject to market and other conditions, it is the Trust's current intention to repay the Bridge with long term fixed rate debt within 120 days of the closing; however, no assurance can be given that such will be the case.

About The Consumers' Waterheater Income Fund

The Fund owns a portfolio of 1.4 million installed water heaters and other assets, leased primarily to residential customers in Ontario. The asset base has been generating stable and growing cash flows since its inception in the late 1950s.

Additional information regarding The Consumers' Waterheater Income Fund is available on SEDAR at www.sedar.com.

Forward-looking Statements

This press release contains forward-looking statements relating to expected future events which reflect management's expectations regarding the Fund's growth, financial results and operating performance. Such forward-looking statements reflect management's current beliefs and are based on information available to them. Many factors could cause results to differ from the results discussed or implied in the forward-looking statements and these differences may be material. Although the forward-looking statements are based on what management believes to be reasonable assumptions, there are many risks and uncertainties that could affect the results discussed or implied in the forward-looking statement. The Fund therefore cannot assure investors that actual results will be consistent with these forward-looking statements. The assumptions include, but are not limited to: terminations, replacements, rental rates, service costs and availability to the Trust of debt capital markets and the cost of debt capital remaining relatively stable. The risks and uncertainties include, but are not limited to: billing arrangements, social or technical changes, regulatory changes, product faults, geographic concentration, competition, lack of written contracts and income tax matters. A summary of these risks and uncertainties can be found in the Fund's MD&A and AIF, both of which can be found at www.sedar.com. A further risk is the current uncertainty in the debt capital markets. Except as required by applicable securities laws, the Fund does not intend and does not assume any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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